NEWS

NEXEN TIRE Reports Record Second-Quarter Results for 2025

NEXEN TIRE, a leading global tyre manufacturer, today announced its financial results for the second quarter of 2025, recording consolidated revenue of KRW 804.7 billion and an operating profit of KRW 42.6 billion. This marks the second consecutive quarter in which the company has delivered record revenue, underscoring its strong growth momentum.

The solid performance in Q2 was driven by increased production capacity following Phase 2 expansion of its European plant in the Czech Republic, coupled with the effective execution of region-specific sales strategies. Despite ongoing uncertainties in the global automotive industry, NEXEN TIRE secured supply volumes in advance, enabling balanced growth across both the original equipment (OE) and replacement (RE) markets.

In the United States, sales continued to strengthen in the second quarter, following a recovery that began in the first quarter after a temporary slowdown in the latter half of 2024. Growth was supported by the expansion of newly established retail distribution channels. In the Asia-Pacific region, Australia and Japan both achieved record sales volumes, underpinned by continued investment in distribution network development.

Operating profit remained stable compared with the previous quarter. Lower ocean freight costs provided some relief, though elevated raw material prices from late last year continued to weigh on margins. With key raw material costs trending downward since early 2025, the company expects improved profitability in the second half of the year.

NEXEN TIRE continues to build brand awareness through localised marketing initiatives in key regions including North America, Europe, the Middle East and Asia-Pacific, while also expanding its retail presence through strategic distributor partnerships.

During the first half of 2025, NEXEN TIRE commenced OE supply for 11 vehicle models, including the Hyundai NEXO, Kia EV4 and Kia TASMAN, and further strengthened its collaboration with global automakers, including premium brands.

In response to recent tariff changes in the United States, NEXEN TIRE will implement gradual price adjustments in the market. To mitigate risks to profitability, the company is focusing on expanding its high-margin product portfolio and strategically reallocating global supply volumes. Real-time monitoring of trade developments and flexible response mechanisms remain in place as bilateral negotiations progress.

“Despite persistent macroeconomic challenges, NEXEN TIRE achieved record sales for two consecutive quarters by maintaining balanced growth across both OE and RE segments,” said John Bosco (Hyeon Suk) Kim, CEO of NEXEN TIRE. “We will continue to strengthen our global competitiveness through strategic partnerships and tailored regional initiatives.”